NAI Partners Investment Fund, part of the Investor Services division of Houston-based full-service commercial real estate services firm NAI Partners, has successfully closed on two significant properties in Texas via its NAI Investment Fund I vehicle.
In the first transaction, the Fund acquired 11301 Fallbrook Drive, a 61,165-sq.-ft. Medical Office building located directly adjacent to the Cypress Fairbanks Medical Center in Northwest Houston.
The second sale marks the Fund’s first foray into San Antonio, with the purchase of Marymont Office Park, an 85,368-sq.-ft. office building located in Northeast San Antonio directly adjacent to NE Loop 410.
“We’ve had our sights set on expanding in Houston as well as adding a well-regarded office property in San Antonio, and we’re pleased to have been able to add both to our portfolio virtually back-to-back,” said Andrew Pappas, head of the NAI Partners Investment Fund. “It’s been an exciting quarter for us, and we’re not done yet.”
In the 11301 Fallbrook Drive acquisition, Mr. Pappas worked with Tyler Ford of HFF to secure debt financing, with equity funded 100% by NAI Investment Fund I. Jack Russo and Blake Virgilio of Caldwell Companies represented the Seller, Iron Creek Ventures.
11301 Fallbrook Drive is situated directly South of the Cypress Fairbanks Medical Center, and is currently 60.8 percent leased to a diverse roster of physicians, pharmacies, and healthcare providers. The NAI Investment Fund is committed to substantial capital improvements to the property and providing a high-quality tenant experience.
NAI Partners’ Landlord Services division, led by Jim Tainter, will manage and lease the building through that group’s Property Management and Office Project Leasing teams.
In the Marymont Office Park transaction, Mr. Pappas and Adam Hawkins of NAI Investment Fund sourced, negotiated, and closed the transaction. NAI Partners partnered with Brent Reed of Amegy Bank for debt financing, with 100% of equity funded by NAI Investment Fund I. Carrie Caesar of Cushman Wakefield represented the Seller, RLA Marymont and DKJ Development.
Marymont Park is a four-building, one-story office park located on 2391 NE Loop 410 in Northeast San Antonio. The project is 87 percent leased to an assorted group of healthcare tenants, government agencies, non-profits, and small businesses. The NAI Investment Fund has allocated significant capital towards infrastructure and aesthetic improvements and is committed to adding value for Marymont’s tenants and providing quality office space in the Northeast submarket of San Antonio.
Josh Welch of NAI Partners’ Landlord Services division will manage the building, with leasing handled by Clare Flesher and Mitchell Lyons of NAI Partners’ San Antonio office.
NAI Investment Fund I has been organized by NAI Partners to invest in office and industrial multi-tenant properties in Houston, Austin, and San Antonio that can be acquired at prices below replacement cost; are currently generating (or with repositioning or additional leasing at market rental rates would generate) positive cash flow after debt service payments; and offer the prospect of significant cash flow and appreciation over a projected holding term of three to five years. For additional information regarding the NAI Partners Investment Fund platform, please contact Andrew Pappas at 713.629.0500 or email@example.com.